Can you imagine your life without a credit card, or two? Whether it’s to make payments online, shop till you drop, or for use as a lifeline in an emergency, the arrival of the credit card has been fortuitous both for the consumer, as well as the credit card company.

CARD CLONING?!

As efficient and easy as the credit card makes your life, the world over, credit card theft and fraud is a problem that is slowly but certainly spiralling out of control. Card-cloning is the latest in a string of issues faced by the banking industry, by which card details are furtively recorded during transactions at petrol pumps and supermarkets and emailed across the globe for illegal withdrawals from ATMs.

In fact, customers at a petrol pump in the city of Leicester recently found that their card details were used to withdraw money from various places across the world, including India.

IIT FRAUDSTER!

Closer to home, an 18-year-old IIT student posed as a bank executive, got credit card details from customers, and then used the data to book air tickets and buy laptops. He tied up with a travel agent to cancel the tickets and share the returns, while he sold the laptops across the country at a discount. He scammed 25 cardholders of a whopping 6.5 lakhs in less than six months!

While the banks and authorities grapple with theft and fraud, it’s not just these conmen and tricksters that you need to look out for.

ARE YOU A VICTIM? LEARN HOW TO PROTECT YOURSELF

Firstly, did you request your card, or was it forced on you? You need to know that no bank has the right to forcibly issue a credit card without prior consent, and they certainly can’t charge you for it.

Your acceptance of and/or use of the card automatically implies your acceptance of the terms of the user agreement. You should know what the agreement contains and, if there is anything in it that you disagree with, you are responsible for declining the card. In some agreements, there is a time limit for rejecting the card. If/when that time passes, the agreement automatically becomes valid.

When an issuer does try to sell you a product on the phone, you must ask for terms and conditions, application forms and so on before you agree to take a credit card. Make it a priority to fill in all application forms yourself, and choose your credit card company only after reviewing all the specifics such as interest rates, processing charges, and so on.

Companies also add to costs by tacking on subscriptions to insurance services or publications without your approval. Be wary of these occurrences. In fact, if you read the fine print carefully, you might see additional information about rewards and travel programmes, insurance coverage and privacy policies, lists of fees, and information about foreign currency transactions. Make sure you understand what each of these means, and what it is you are getting yourself in to.

CREDIT CARD INTEREST RATES

What about the interest rate on your card? How often have you been offered, and succumbed to a card at 0% interest, only to find that interest is charged after the first few months?

Similar Posts:

Share